The purpose of this study is to compare linear programming (LP) with the theory of constraints (TOC) as decision making tools. Specifically, since several previous studies which compared LP with the TOC did not provide comparison criterion, the paper ...
The purpose of this study is to compare linear programming (LP) with the theory of constraints (TOC) as decision making tools. Specifically, since several previous studies which compared LP with the TOC did not provide comparison criterion, the paper compared LP with TOC under three comparison criterion such as logical aptness, superiority of solution, and practical scope. In order to achieve the purpose, this paper formulates three scenarios to find out whether LP is better than the TOC, or vice versa. In each scenario, the comparison focused on the effect of reductions in capacity and demand, demand increase by reducing price, and capacity increase by using overtime on LP and TOC, respectively. The results of the study indicated that LP had the possibility of providing better solution than TOC since TOC made a decision focused on only one constraint. LP also provided easy way of problem solving in the process of obtaining solutions in several scenarios. However, the superiority of solution depended on the value of specific exogenous variable such as overtime.